Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
5 H: V6 g3 X; xexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
3 _  \- m0 a3 ~1 q' Fthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
) F& o* E) _+ Y% u# wEXXON, BG, BP, Cheveron ....xyz.. oils

# F  E1 n7 N% @Recently OPEC reduced crude oil production twice over just a few
& Q7 s# O. ]% [5 t  L% K' Gmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


2 [7 Y. K: p# |0 R+ m: C! iThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
! o  v6 s* u( `0 {  b5 _in the ocean near Brazil. Each of these oil fields has more oil than
3 b8 B' |: W. t3 ~( PArabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
& U7 A. G4 r6 B3 G! Zbeing used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
4 h6 E$ i3 ~4 K6 B1 epotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
1 c6 [( X+ I1 x5 L% N% |  [cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


# k5 D3 T9 V7 V8 k: s. w3 ]6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
9 _, t, S5 N: p. `expected to be built in the future. Much of the energy they produce
5 `7 c; J1 m6 G1 C, Hwill replace oil.


7. Every company in any form of transportaion business is replacing
  W& |0 w, x% o, i  x0 ?& qolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
; [3 X& Q1 A5 N  ]1 [2 P$ aequipment.
4 V* g* }) {" e+ n. c* O* `* ]
( {9 k: y. S6 B" d
$ a2 I' U! o# M, o8 EAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
3 p' V  R" W9 j8 _3 Y9 G
0 X! U' Y/ |$ e, @+ J% ]) ~9 J5 j
8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.

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( U" D8 G% M; o9 u3 c# O5 f9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
% Z$ t1 u, D( c) u7 n# i# q$ D1 }5 s

10. Solar, wind and ocean energy is displacing oil as an energy
& o0 b) w. R2 y+ k) v' v  Gsource. Three new wind turbines are being erected every day in the US.
+ b: H7 ~% r: U8 d

. [' M1 k! B* v% wEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
# T6 u# s# ^9 G/ e1 E: E+ hto control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
9 W8 G. G' G4 L. i' Avalue .....
3 M' S6 W1 e  _, ]1 B: Z3 nIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
. Y, M# [' _% G# O: x) Y! ~2 t
9 A4 b% a0 W7 \" @/ f+ e% w1 ]
The above articles are from WSJ .............PUBLISHED ON 9TH JAN
+ p2 [2 r4 n$ W& E2009 ... FYI-Only